Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Seagate Technology (STX)
Market Cap: $32.92 billion
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Why Do We Think Twice About STX?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.8% annually over the last five years
- Gross margin of 30.4% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Low free cash flow margin of 9.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Seagate Technology’s stock price of $153.68 implies a valuation ratio of 15.8x forward P/E. Check out our free in-depth research report to learn more about why STX doesn’t pass our bar.
Estée Lauder (EL)
Market Cap: $32.75 billion
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Why Do We Think EL Will Underperform?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Inability to adjust its cost structure while its revenue declined over the last year led to a 12.1 percentage point drop in the company’s operating margin
- Sales were less profitable over the last three years as its earnings per share fell by 35.3% annually, worse than its revenue declines
Estée Lauder is trading at $91.04 per share, or 41.7x forward P/E. If you’re considering EL for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Buy:
Amphenol (APH)
Market Cap: $127.4 billion
With over 90 years of connecting the world's technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Is APH a Good Business?
- Annual revenue growth of 22.4% over the past two years was outstanding, reflecting market share gains this cycle
- Unparalleled revenue scale of $18.82 billion gives it an edge in distribution
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 29.1% outpaced its revenue gains
At $104.90 per share, Amphenol trades at 37.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
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